Sunday, October 11, 2015

Need Cash? Try These 5 Recommended Sources of Cash for Small Businesses

One of the biggest problems faced by small business owners is finding cash to start or expand their business. Grants are great sources of money that does not have to be repaid, but they are often not easy to find. And banks are often tough to deal with. Fortunately, other alternative sources are available.Alternative sources

Purch, a Utah-based company that publishes online information about tech-related products and services for both consumers and businesses, recently recommended several sources of funding available to small businesses. The information was published recently on their company web site called Business News Daily. They researched and recommended these 5 best sources for cash.

#1 - Best working capital loans: Fundation - recommended for small companies who have been in business for at least two years and have at least three employees. Also required is an annual revenue of $100,000 or more and good personal credit. Fundation has an easy application and approval process and good customer service. Loans are from $20,000 to $500,000.

#2 - Best lines of credit: Kabbage - this company specializes in lines of credit from $2,000 to $100,000 for small businesses. Applications can be taken online with quick approval and, once approved, instant access to your cash. Fees are as little as one percent a month, and you have six months to pay off the loan. They are rated high in good customer service.

#3 - Best startup loans: Accion - specializes in small business loans for startups who have been in business for less than 6 months. A minimum credit score of 575 is required. Loans are from $10,000 to $100,000 with interest rates as low as 10.99 percent.

#4 - Best merchant cash advances: RapidAdvance- specializes in cash advances of 50-250 percent of monthly credit card volume. Applicants must have been in business for at least three months. A fixed percentage of your future card receipts is applied until the loan is paid off.

#5 - Best bad credit loans: OnDeck - specializes in loans to companies with bad credit who have been in business for at least one year. Loans are between $5,000 and $250,000 with loan lengths from 3-24 months. These types of loans are paid back on a daily or weekly basis.